Hero Fincorp, the financial services arm of Hero MotoCorp, has announced plans to raise Rs 3,668 crore through an initial public offering (IPO). The company filed its draft prospectus with the Securities and Exchange Board of India (SEBI) on August 1.
Key Details of the IPO
- Fresh Issue: The IPO includes a fresh issue of shares worth Rs 2,100 crore.
- Offer For Sale (OFS): Existing shareholders will sell shares worth Rs 1,568 crore. Participants in the OFS include:
- AHVF II Holdings Singapore II Pte. Ltd
- Apis Growth II (Hibiscus) Pte. Ltd
- Link Investment Trust (through Vikas Srivastava)
- Otter Ltd
Use of Proceeds
The funds raised from the fresh issue will be used to enhance Hero Fincorp’s capital base, supporting future lending activities.
Company Overview
Hero Fincorp is a non-banking financial company (NBFC) that offers a wide range of financial products, primarily targeting retail, micro, small, and medium enterprises (MSMEs) in India. As of March 2024:
- Assets Under Management (AUM): Rs 51,821 crore
- Customer Base: 1.18 crore
- Revenue Segments: Retail loans (65% of AUM) and MSME loans (21% of AUM)
IPO Managers
The IPO is being managed by a consortium of financial institutions:
- JM Financial Ltd
- BofA Securities India Ltd
- HSBC Securities and Capital Markets (India) Private Ltd
- ICICI Securities Ltd
- Jefferies India Private Ltd
- SBI Capital Markets Ltd
The shares are set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)
